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Interim deal reached in Ukrainian gas row

Gas deal reached during European, Ukrainian and Russian talks. (UPI Photo/Sergey Starostenko) BERLIN, Sept. 26 (UPI) — Trilateral natural gas talks Friday in Berlin have resulted in temporary relief for Ukraine, delegates at the conference confirmed. Russian, Ukrainian and European officials met in Berlin in an effort to avert a gas crisis for the upcoming winter. Russia meets about a quarter of the gas needs for Europe, though the bulk of that volume runs through the Soviet-era transit system in Ukraine. Contractual woes in 2006 and 2009 forced Russian gas company Gazprom to cut gas supplies through Ukraine and European leaders are worried about a repeat of the crisis given ongoing acrimony between Kiev and Moscow. European Energy Commissioner Gunther Oettinger said during August talks with Russian Energy Minister Alexander Novak an interim price, repayment of unpaid bills and fulfillment of transit obligations must be part of an interim […]

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Statoil Calls Off 40,000-Bpd Canadian Oil Sand Development

OSLO/CALGARY, Sept 25 (Reuters) – Norwegian energy firm Statoil said on Thursday it will postpone development of its 40,000 barrel per day Corner oil sands project in Alberta, Canada, for at least three years and cut about 70 jobs at its Canadian unit because of rising costs and limited pipeline space. Corner would have been the second major development at Statoil’s Kai Kos Dehseh property in northern Alberta. The company said its existing thermal oil sands operation, the 20,000 bpd Leismer project, is not affected by the postponement. Statoil said it decided to delay construction of the project because inflation was pushing up the cost of labor and materials, while tightness in pipeline space to the U.S. market was pushing down the price of its oil. "Costs for labour and materials have continued to rise in recent years and are working against the economics of new projects," Staale Tungesvik, […]

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We’re the gas answer, Norway tells Europe

European Energy Commissioner Gunther Oettinger sees Norway as essential part of energy security puzzle. (CC/Jacques Grießmayer) BRUSSELS, Sept. 26 (UPI) — Norwegian Energy Minister Tord Lien said his country has the resources and infrastructure in place to serve as a steady partner in the European energy sector. Lien met in Brussels with European Energy Commissioner Gunther Oettinger during a bilateral energy conference . Lien said less than 30 percent of the natural gas available on the Norwegian continental shelf has been produced, meaning Norway can be a reliable partner for the European community for decades to come. "We have both the infrastructure and the resources to remain a stable supplier of natural gas to Europe for decades to come," he said in an address Thursday. "Our production has grown more or less uninterrupted for 20 years." Norway last year sent 92 percent of its oil exports and at least […]

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Ireland takes steps toward wave energy

Wave pioneer Pelamis put on short list for Irish energy project. UPI/Matthew Healey EDINBURGH, Scotland, Sept. 26 (UPI) — Wave energy pioneer Pelamis said Friday it was put on the short list of companies slated for a role alongside Irish utility company ESB. The Irish government aims to install its first wave energy project, the five megawatt WestWave facilities, by 2018. It’s already secured support from the European Commission. Pelamis Wave Power said it’s been selected as one of the developers set to participate in the next stage of a competitive procurement process . Last year, the Pelamis P2 wave energy system was connected to the Scottish grid for an accumulated 7,500 hours, contributing 160 MW of electricity to the nation’s grid. The system works by converting wave energy into electricity using a snake-like device deployed offshore. Each unit in the system can generate as much as 100 kilowatts […]

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Category: Uncategorized

Ukraine to pay $3.1bn of Gazprom debt by end of 2014

Ukraine will pay Gazprom $2 billion for gas it has received from Russia by the end of October and an additional $1.1 billion by year’s end, EU Energy Commissioner Gunther Oettinger announced. The amount that Ukraine is expected to pay Russia is short of the $5.3 billion that Kiev currently owes Gazprom. Gazprom will resume gas deliveries and send at least 5 billion cubic meters (bcm) of gas to Ukraine at a price of $385 per 1,000 cubic meters after it receives the first tranche of $2 billion, the EU commissioner and Russia’s Energy Minister Alexandre Novak said. “This depends on final agreements. Our colleagues say that this is [going to be in] October,” Novak said in Berlin on Friday. However, Novak reiterated that $385 was a reduced price, “$100 discount off the current price” . This price will be valid for another six months, he added. Ukraine will […]

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Brent Crude Heads for Weekly Decline on Ample Supplies

Brent crude headed for its third weekly loss this month amid speculation that plentiful oil supplies will cushion the market against unrest in the Middle East. West Texas Intermediate was steady in New York. Futures were little changed in London and down 1.5 percent this week. The broadest Arab-U.S. military coalition since the 1991 Gulf War struck Islamic State targets in Syria, while in Iraq , fighting has largely spared the south, home to three quarters of supply from OPEC’s second-largest crude producer. Saudi Arabia will keep supplies steady the rest of the year, a person with knowledge of the kingdom’s policy said. “I don’t think the geopolitical issues are as relevant these days,” Frank Klumpp, an analyst at Landesbank Baden-Wuerttemberg, said by e-mail. “There’s not much market reaction to the fighting in Iraq as it’s considered that the oilfields in the south aren’t in danger. The most important […]

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Natural Gas Holds Losses on Larger-Than-Expected Supply Gain

By Nicole Friedman NEW YORK–Natural-gas prices stayed lower Thursday after weekly government data showed that supplies grew more than expected last week. Producers added 97 billion cubic feet of natural gas into storage in the week ended Sept. 19, the U.S. Energy Information Administration said Thursday. Analysts and traders surveyed by The Wall Street Journal had called for a 92-bcf injection. The addition was larger than any of the survey projections. Though natural-gas supplies were largely depleted by record demand for the heating fuel last winter, inventories have rebuilt unusually quickly this spring and summer. Production has been higher than expected, and mild weather has kept demand low for gas-powered electric air-conditioning. As of Sept. 19, stocks stood at 2.988 trillion cubic feet, 13% below the five-year average for the week. However, prices pared losses after the report’s release despite the larger-than-expected build. Natural gas for October delivery recently […]

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U.K. Seeks to Criminalize Manipulation of 7 Benchmarks

The U.K. government plans to criminalize the manipulation of seven more benchmarks in markets from foreign exchange to gold and oil as it tries to revive confidence in the integrity of London as a financial center. The Treasury today started a review into whether it should extend legislation regulating the London Interbank Offered Rate to cover other key rates including the WM/Reuters 4 p.m. London currency fix, the Sterling Overnight Index Average, the London gold fixing and the ISDAFix, according to a statement . The government aims to have the rules in place by the year-end — five months before the next general election. The U.K. is stiffening the penalties for manipulation after benchmarks set in London were tainted by scandal. At least 10 firms have been fined almost $6.5 billion for rigging Libor and related gauges, and regulators are probing whether traders rigged key foreign-exchange rates used by […]

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Iran President: Nuclear Deal Could Aid Extremism Fight

Iranian President Hasan Rouhani addresses the United Nations General Assembly Thursday. Adrees Latif /Reuters UNITED NATIONS—Iranian President Hasan Rouhani signaled Iran could ramp up its cooperation with the west over the threat posed by Islamic State if there is a successful conclusion to nuclear talks with six major powers. Speaking at the United Nations General Assembly in New York on Thursday, Mr. Rouhani said the fight against Islamic State should be led by regional players but said a nuclear deal would open the way for international collaboration on the threat. If the nuclear talks succeed, "an entirely different environment will emerge for cooperation at the regional and international levels," he said. That would allow "greater focus on some very important regional issues—such as combating violence and extremism in the region." Iran, which is a key ally of the Assad regime in Syria, has criticized the U.S.-led coalition against Sunni […]

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Iran ready for European gas role

UNITED NATIONS, Sept. 25 (UPI) — Iranian President Hassan Rouhani is in the United States to attend a meeting of the U.N. General Assembly. During a meeting with Austrian President Hans Fischer, the Iranian leader said gas installations in western Iran could link to Europe. "Iran can be a secure energy center for Europe," the Iranian president said. Iran has held out its natural gas reserves to a European community eager to break Russia’s grip on the regional energy sector. It touted its gas as an option to fill the now-shelved Nabucco pipeline through Turkey to Europe, though sanctions have interfered with Iran’s ambitions. Nevertheless, an Iranian president seen as a moderate when compared with his predecessor Mahmoud Ahmadinejad said Iran enjoys a "unique" position in the regional energy sector. Iran has the second largest deposits of natural gas in the world, though the sector is underdeveloped because of […]

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